FLASH NOTE

| Economy Update
| Economy

Economy Update
June 23, Foreign Direct Investment (FDI) jumps 91%YoY Net FDI (May’20)
2020
$120mn -53% YoY -10% MoM
in 11MFY20
As per the latest data compiled by SBP, Foreign Direct Investments in May’20
declined by 53% to record at $120mn (nine-month low) against $254mn same Major Contributing Countries
period last year. On sequential basis, it decreased immensely by 10% as 11MFY20 $mn Contribution - RHS
900 40%
compared to $133mn in Apr’20. The significant decline in FDI is primarily 800
NOTE

35%
attributed to Covid-19 pandemic which induced global economic slowdown and 700 30%
compelled global investors to hold their investments. While, on cumulative basis 600
during 11MFY20 FDIs recorded impressive growth of 91% to arrive at $3.08bn as 25%
500
opposed to $2.63bn same period last year, primarily led by Chinese investments 20%
400
in power projects under CPEC coupled with lower outflow during the period. 300
15%

200 10%
During 11MFY20, hefty surge in net FDI was led by Chinese investments followed 100 5%
by Norway and Malta. Net FDI from China increased by 8.41x to $855.6mn vs - 0%
$101.7mn SPLY. Norway has invested $346.0mn as compared to $110.7mn net
inflow in SPLY, while Malta has invested $203.7mn during the period under
review vs net outflow of $128.3mn SPLY. Together China (including Hong Kong)
and Norway accounted for 57% during 11MFY20.
Source: SBP, AAH Research
FLASH

Sector wise, power sector fetched highest net FDI during 11MFY20 to $750mn as
compared to the net outflow of $3245mn SPLY. Communication sector fetched Major Contributing Sectors
2nd highest net FDI during 11MFY20 to $584mn as opposed to net outflow of 900 35%
$52.9. Oil & Gas sector fetched $276mn while Financial Business sector recorded 800 30%
700
net FDI of $257mn. 600 25%
500 20%
400 15%
300 10%
200
Million $ May'20 May'19 YoY Apr'20 MoM 11MFY20 11MFY19 YoY 100 5%
- 0%
Inflow 204 312 -35% 175 17% 3,075 2,626 17%
Power

Machinery
Communications

Fin. Business
O & G Exploration

Electrical
Outflow 84 58 44% 42 101% 674 1,366 -51%
Net 120 254 -53% 133 -10% 2,401 1,260 91%
Source: SBP

11MFY20 $mn Contribution - RHS

Source: SBP, AAH Research

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Aba Ali Habib Securities (Pvt) Limited
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